Kazakhstan
Residen.

al
Market

Quarterly
Snapshot
Q2
2010

VIEWPOINT RESIDENTIAL
MARKET
Q2
2010
at
a
glance

“Q2
saw
the
 comple.on
of
Block
A
at
the
 Esentai
 residen.al
 complex,
this


elite
apartment
project
brings
a
new
dynamic
to
the
residen.al
market
and
 Almaty
Average
Residen.al
Price
is
 proving
 very
 popular
 with
 tenants
 looking
 for
 high‐end,
 well
 located

accommoda.on.
 
 We
 are
 delighted
 to
 have
 signed
 an
 agreement
 with

Ahsel
 Holdings
 to
 promote
 two
 of
 their
 projects
 in
 Almaty,
 firstly
 the

Almaty
Average
Prime
Rental
Price

Edelweiss
 project
 at
 Gorni
 Gigant,
 this
project
 offers 
high‐end
 villas
 in
 a

gated
community
 with
fitness
club,
spa
and
children's 
centre
and
secondly

the
 Ahsel
 Kent
 apartment
 based
 project
 on
 Raimbek
 Avenue.
 Ahsel

Holdings
are
 offering
 a
 financial
incen.ve
 scheme
 to
encourage
 poten.al
 Astana
Average
Residen.al
Price
Ainash
Korganbekova purchasers,
 this
 scheme
 is
extremely
 compe..ve
 to
most
 of
 the
 current

Director
 bank
rates
on
offer”.

Veritas
Brown
Astana
Average
Prime
Rental
Price

KEY
TRENDS
Demand
‐
Mortgage
Availability

Demand
for
housing
 in
many
 respects
depends 
on
the
 availability
 of
mortgage
 loans.
 The
 recent

financial
 crises
 in
 Kazakhstan’s
banking
 industry
 has
 meant
 that
 mortgage
 availability
 is
 limited,

although
there
is
liquidity
in
the
 banking
system
some
banks
are
 s.ll
reluctant
to
lend.
In
2009
the

na.onal
 well‐fare
 fund
"Samruk‐Kazyna"
placed
 120
 billion
 Tenge
 for
 mortgage
 loan
 refinancing

with
 the
 following
 pre
 condi.ons:
 a
 mortgage
 rate
 not
 exceeding
 9
 %
 for
 workers
 of
 limited

resources
 and
 socially‐vulnerable
 levels 
 and
 not
 exceeding
 11
 %
 ‐
 for
 other
 categories
 of

borrowers.

Development
Ac6vity
Current
construc.on
ac.vity
in
Almaty
is
s.ll
rela.vely
subdued.
According
to
the
City
Government

in
the
 first
 quarter
 of
 2010
the
 construc.on
of
33
 housing
 complexes,
 with
8,142
equity‐holders

was
 commissioned.
 Within
 the
 ac.on
 plan
 for
 Kazakhstan
 socio‐economic
 development,
 the

equity‐shared
development
sector
in
Almaty
was
allocated
$509
million
from
the
 public
budget
for


2009.
 Work
is
underway
on
the
building
of
some
 housing
units
primarily
by
 the
 larger
developers

such
 as:
 Bazis‐A
 with
 "Shahristan",
 “Solnechnaya
 dolina”
 and
 “Alpiyskie
 luga”
 residen.al

developments,
 ElitStroy
 (“Al‐Farabi","Khan‐Tengri”
residen.al
complexes),
 VEK
(“Nauai”
complex),

Woolim
(«Apple
Town»),
Europolis
(“Europolis”
housing
complex).

Development
Fundamentals

During
2009,
according
to
the
State
Agency
on
Sta.s.cs,
1.05
million
sq
m
of
residen.al
space
was

commissioned
in
Almaty.
About
240,000
sq
m
was
commissioned
by
private
developers,
which
is

approximately
23%
of
the
city’s
total.
The
main
source
of
financing
of
residen.al
construc.on
in

2009
was
debt
financed
by
government
funds. The
main
driver
of
the
residen.al
building
sector
in

2009
was
the
Government’s
program
of
accessible
housing,
although
the
total
amount
invested

into
residen.al
construc.on
was
much
lower
than
in
the
previous
few
years.
The
total
investment

volume
into
Almaty
residen.al
construc.on
accounted
for
$400
million,
55%
down
from
the
level

seen
in
2008.


PROPERTY
LISTINGS
Contact
Esentai
Residen.al











 Ahsel
Holdings
Edelweiss
Project















Block
A
Apartments
Ainash
Korganbekova
Almaty
• New
Build • Gated
Community Tel
+7
(727)
3344000
• Elite
Project • Health
Club
and
Spa Mobile
+7
701
266
8504
• 24
Hour
Security • 24
Hour
Security
• Lease/Sale
ainash.k@veritasbrown.com
• Villas
• Mountain
Views • Town
Houses Veritas
Brown
• Underground
Parking • Apartments CDC
2
Business
Center
• Idilic
Loca.on
240v
Furmanov
Street
Almaty

www.veritasbrown.com